Because part of their cost is to pay for your income. You also get Tax deduction on certain "cost" as well. Just not everything. > My labor is turned into prof

Because part of their cost is to pay for your income. You also get Tax deduction on certain "cost" as well. Just not everything. > My labor is turned into profits for my employer and similarly their profit is eventually taxed. Your labour is tuned into revenue first. There are plenty of companies burning through cash for 10 years before making a single cent of profits.